Review of the Original Pancake House Franchise Opp and Startup Costs

May 14, 2014

With over 25 different recipes for waffles, crepes, and the ever-popular pancake, the Original Pancake House [OPH] provides a local community with authentic flavors that have been developed for generations. This franchise, which is often called one of the most imitated businesses in the world today, will give you the opportunity to get into the growing breakfast niche while still getting the chance to have evenings free because of the morning-only hours of this franchise.

Are you ready to discover if the Original Pancake House has what it takes to provide your investment portfolio with the small business opportunity you need for success or diversification? Let’s take a look at what is required to get an OPH off the ground.

What Is the Initial Investment That’s Required?

In order to get an Original Pancake House off the ground and join this restaurant franchise that has been around for over 60 years, you’ll need to pay an initial franchise fee of $60k. Although this fee is higher than the average franchise opportunity you’ll find today, the ongoing royalties are a lot less than average at just 2%. Instead of being collected daily or weekly from your gross receipts, it is collected monthly.

In return, you’ll get a menu that has received national acclaim because it is innovative, yet still tastes of home. It’s a family friendly atmosphere that you’ll be providing to your community with a warm, inviting interior that has home-kitchen style decorations. The competition for this franchise is intense, so you’ll want to get your application in right away. OPH only approves about 5 new franchises per year.

The capital that you need on hand is relatively low as well, at just $100k, but you’ll also be required to have an extensive initial investment if you invest into this opportunity. The minimum estimated initial investment is $372k, while the high estimate of this franchise is nearly $1 million. In return, however, you’ll also be directly involved in an organization that took in over $150 million by serving just breakfast in a little over 150 different locations.

What Kind of Support Is Received?

The Original Pancake House looks to set up its franchisees to receive a high level of success. That starts with an extensive initial training program that lasts for 10 weeks at the company’s Portland, OR headquarters. It continues through the interior design and decorating scheme that brings about a comfortable, warm, and happy atmosphere that reminds people of their mother’s kitchen. It also continues through innovative new pancake, waffle, and crepe recipes that will have people craving your breakfast foods in your community every single day.

What are the exclusive products that make this franchise such a tempting proposition for breakfast every day? The signature item on the menu is the apple pancake, which is a single layer pancake that is smothered in cinnamon sugar and sautéed apples to create breakfast delicacy that is about as big as your head! The other popular item on the OPH menu is the Dutch Baby, which is an air-filled pancake served with whipped butter, lemon, and powdered sugar.

Because of the limited hours that this franchise is open, you do receive a protected territory once you sign your franchise agreement, but that scope of that territory may be rather limited – especially if you’re looking to put a franchise into a major metropolitan area. With franchises that stretch from the East to the West Coast and all the way down to Hawaii, the opportunities are available just about anywhere in the United States for you to get your own OPH up and off the ground. That means you can introduce the best pancakes in the world to the front door of the customers in your community with this franchise opportunity.

Is OPH Really Just About Pancakes?

It’s true that not everyone loves a pancake. It could be because of a gluten allergy or just the fact that pancakes don’t float their boat. You’ll still be able to market to these customers with your OPH franchise thanks to the menu additions of omelets that are made in a tasty variety of ways. The best one of all is the mushroom omelet that has a thick sherry sauce added to it. Thick sliced bacon is always a popular side to add, while cereals and side dishes like cinnamon applesauce, toast with preserves, and even lingonberries can help to round out any meal.

The real question that needs to be asked, however, is this: would owning an Original Pancake House franchise make sense for you? “The only thing we have going for us is the quality of the food,” said president Ron Highet to Oregon Business in 2010. “We’re so good it allows us to be arrogant.”

“When times are good they want our sugar and when times are bad they want our sugar.”

It’s high quality ingredients that make the difference in this franchise, even when carbs are counted. Real butter, real whipped cream, and fruit compotes draw people into the franchise and keep them coming back time and time again. The training component of becoming a franchisee is rather extensive and not everyone can commit to 2.5 months of training. The high estimates of an investment make this a niche opportunity for the average small business person or entrepreneur as well, but the rewards of this franchise opportunity are clearly there.

With an average of over $1 million in revenues per location, there is a great opportunity for you to radically change the way your community views breakfast. If you can afford the initial investment and want to either spend time in the evenings with your family or have time for your other investments throughout the day, then the Original Pancake House is an excellent franchising opportunity. Apply today to see if you can become one of the up to 5 franchisees that will be approved this year for a new location.

After being physically and mentally disabled by a brain tumor, Brandon overcame the odds to regain his health to help his pregnant wife in her fight against stage 3 breast cancer. A couple of years later he launched his blog. Today over 1 million business owners read his blog every month. Read Brandon's inspirational comeback story here.